• by Tanya Gazdik , November 10, 2024

American shoe company Steven Madden will cut nearly half of its China production within the next year due to impending tariffs, but don’t look for more U.S. jobs as a result. 

“The retailer, best known for accessorizing teenagers across the United States, told Wall Street analysts on Thursday that it took action as soon as the election results were announced to brace for future tariffs on Chinese goods,” according to The New York Times. 

CEO Edward Rosenfeld said the company had been working for several years to build up a factory base outside China in places like Cambodia, Vietnam, Brazil and Mexico.

“Like all footwear companies, the majority -- about two-thirds -- of Steve Madden’s business relies on goods that are imported to the United States, the company noted,” according to CNN Business. “And of those imports, 70% are from China. So that’s a lot of rejiggering to do.”

The likelihood of tariffs was discussed by other shoe manufacturers last week. 

"At Wolverine Worldwide, which owns the Merrell, Saucony and Sweaty Betty brands, president and chief executive officer Chris Hufnagel said the company had worked hard to diversify its footwear sourcing outside of China,” according to Footwear News. “Exposure in the region went from about 40% in 2019 to the mid-teens in 2024, Hufnagel said, adding that within its sourcing ecosystem, Wolverine has the ability to ‘dual source’ if needed.”

Wolverine says “other important regions are Vietnam, Bangladesh and Indonesia.”

Some companies might pass added costs to American consumers via higher prices. 

“If imposed, the proposed tariffs on imports could lead to consumers paying $6.4 billion to $10.7 billion more for footwear, according to a new analysis from the National Retail Federation,” according to CBS News. “Americans could also lose between $46 billion to $78 billion in spending power each year the tariffs are in place, the organization estimates.”